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Renascent Entrepreneurship - Entrepreneurial Preferences Subsequent to Firm Exit

Author

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  • Erik Stam
  • David Audretsch
  • Joris Meijaard

Abstract

Why should individuals that have exited their firm consider re-entering into entrepreneurship, i.e. become renascent entrepreneurs? According to the logic of economic models of firm dynamics there is no reason to re-enter into entrepreneurship following termination of a previous firm. In contrast, research on nascent entrepreneurship has shown the positive effect of entrepreneurial experience on planning a new firm start. Based on the empirical evidence from a database consisting of ex-entrepreneurs, this study shows that renascent entrepreneurship is a pervasive phenomenon in current society. Especially entrepreneurial human and social capital induce renascent entrepreneurship. In addition, the nature of the firm exit also affects the probability of renascent entrepreneurship.

Suggested Citation

  • Erik Stam & David Audretsch & Joris Meijaard, 2006. "Renascent Entrepreneurship - Entrepreneurial Preferences Subsequent to Firm Exit," Papers on Entrepreneurship, Growth and Public Policy 2006-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    • Handle: RePEc:esi:egpdis:2006-06
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    References listed on IDEAS

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    2. Lionel Désiage, 2010. "What are Entrepreneurs’ Objectives When Starting a New Business?," TEPP Working Paper 2010-06, TEPP.
    3. Thomas Gries & Wim Naudé, 2009. "When to Start a New Firm?: Modelling the Timing of Novice and Serial Entrepreneurs," WIDER Working Paper Series RP2009-39, World Institute for Development Economic Research (UNU-WIDER).
    4. Calza, Elisa & Goedhuys, Micheline, 2016. "Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development," MERIT Working Papers 2016-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2015. "Rising from the Ashes: Cognitive Determinants of Venture Growth after Entrepreneurial Failure," Entrepreneurship Theory and Practice, , vol. 39(2), pages 209-236, March.
    6. Jing Chen, 2013. "Selection and Serial Entrepreneurs," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 281-311, June.
    7. Pavel L. Glukhikh & Alla N. Golovina, 2021. "Serial entrepreneurs’ strategies for innovative business: A typology and assessment," Upravlenets, Ural State University of Economics, vol. 12(5), pages 84-95, November.

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    Keywords

    entrepreneurial preferences; entrepreneurial skills; firm exit; renascent entrepreneurship; economics of entrepreneurship;
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